Study supporting the impact assessment of the future European Social Fund proposal : achieving structural change : conditions for success in the areas of ESF intervention : Lithuania case study : development of active labour market policy.
Date: 2025-01-20
Institutions: Directorate-General for Employment, Social Affairs and Inclusion
Subjects: EU budget, EU financing, European Social Fund, Lithuania, case study, distribution of EU funding, labour market, proposal (EU), structural adjustment

Study supporting the Impact 
assessment of the future European 
Social Fund proposal. Achieving 
structural change: conditions for 
success in the areas of ESF 
intervention 

LITHUANIA CASE STUDY: DEVELOPMENT OF ACTIVE 
LABOUR MARKET POLICY 

Visionary Analytics, Fondazione Giacomo Brodolini  
December 2024 

 
 
 
 
 
 
 
 
 
 
 
 
EUROPEAN COMMISSION 

Directorate-General for Employment, Social Affairs and Inclusion 
Directorate G — Funds, programming and implementation 
Unit G.1 — European Social Fund + 
Contact: Darius Buinauskas 

E-mail:  empl-g1-unit@ec.europa.eu  

European Commission 
B-1049 Brussels 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUROPEAN COMMISSION 

Study supporting the Impact 
assessment of the future European 
Social Fund proposal. Achieving 
structural change: conditions for 
success in the areas of ESF 
intervention  

LITHUANIA CASE STUDY: DEVELOPMENT OF ACTIVE 
LABOUR MARKET POLICY 

VT/2023/018  

under the multiple framework contracts EMPL/2020/OP/0016  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

Manuscript completed in December 2024 

Authors:  Visionary Analytics 

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4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

Table of Contents 

1. 

Introduction ................................................................................................... 1 

1.1. Context, policy and political considerations ................................................... 1 

1.1.1. Socio-economic context and reform timing ...................................................... 2 
1.1.2. Identified needs and reform objectives ............................................................ 3 
1.1.3. Integration within a broader policy context ....................................................... 4 

1.2. EU and international obligations/conditionalities .......................................... 4 

1.3. Acceptance at institutional and societal level ............................................... 6 

2.  Analysis ......................................................................................................... 7 

2.1. Governance .................................................................................................. 7 

2.1.1. Implementation responsibility and leadership .................................................. 7 
2.1.2. Geographical scope of implementation ............................................................ 8 
2.1.3. Monitoring and evaluation framework .............................................................. 8 

2.2. Administrative capacity ................................................................................ 9 

2.2.1. Human resources and administrative burden .................................................. 9 
2.2.2. Administrative capacity for implementation and monitoring ............................. 9 

2.3. Mechanisms behind the reform and links with ESF and CPR .................... 10 

2.3.1. Mechanisms for achieving reform outcomes ...................................................10 
2.3.2. Practical activation of reform mechanisms......................................................10 
2.3.3. Unexpected impacts and observations ...........................................................11 
2.3.4. Linkages to ESF(+) and strategic objectives ...................................................11 
2.3.5. Alignment with EU Regulations and Instruments ............................................11 

2.4. Mechanisms leading to success and bottlenecks ...................................... 12 

2.4.1. Facilitating factors for reform implementation .................................................12 
2.4.2. Obstacles and mitigation measures ................................................................12 
2.4.3. Impact of EU instruments on reform outcomes ...............................................13 

3.  Conclusions ................................................................................................. 13 

3.1. Impacts of the reform.................................................................................. 13 

3.1.1. Achievement of intended outcomes ................................................................13 
3.1.2. Effectiveness in reaching targeted audience ..................................................13 
3.1.3. Sustainability of reform impacts ......................................................................14 
3.1.4. Insights for future reforms ...............................................................................14 

3.2. Lessons learnt ........................................................................................... 14 

3.2.1. Successes and shortcomings .........................................................................14 
3.2.2. Alternative approaches and missed opportunities...........................................15 
3.2.3. Opportunities for ongoing improvement ..........................................................15 

 
 
 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

1. Introduction 

This report contains a case study for the Study supporting the Impact assessment of the 
future European Social Fund proposal. Achieving structural change: conditions for success 
in the areas of ESF intervention. The reform under assessment examines the development 
of active labour market policies (ALMPs) in Lithuania in the period between 2014 and 2022. 

The  transition  from  a  planned  to  a  market  economy  post-independence  resulted  in  high 
unemployment rates, further exacerbated by the severe 2008 economic crisis, highlighting 
the need for effective active labour policies in Lithuania. Despite notable improvements in 
the  labour  market  situation  over  the  last  two  decades,  several  challenges  persist. 
Particularly pressing is the need to tackle structural unemployment due to skills mismatches 
and  regional  disparities  in  unemployment  rates  and  educational  access.  Even  though 
employment  rates  have  risen  significantly  since  the  crisis  period,  the  risk  of  poverty  in 
Lithuania remains consistently high. Therefore, integrating vulnerable groups such as youth, 
the  long-term  unemployed,  and  older  workers  is  a  central  issue,  as  is  the  need  for 
continuous enhancement of the effectiveness and efficiency of active labour market policy 
programmes through improved evaluation and resource allocation. Since 2014, Lithuania 
has made significant progress in developing the system of ALMPs to address numerous 
complex and long-term challenges rooted in its historical and economic context. This is a 
case  of  an  incremental  reform  that  covered  a  series  of  legislative  and  non-legislative 
changes aimed at increasing the coverage, efficiency, and quality of ALMPs. Some of the 
key changes, among numerous others, included: 

•  Amendments to the Law on Employment Support in 2014, introduced measures 
to make vocational training more attractive and efficient, prevent misuse of funds, 
and support youth employment.  

•  The  Employment  Law  of  2016  expanded  the  scope  of  ALMPs,  focusing  on 
combining vocational training with supported employment to enhance job retention 
and integration.  

•  Since 2017, the formal and non-formal vocational education and training (VET) 
system  was strengthened  for the  unemployed, primarily funded through  the  ESF 
via a “training voucher” scheme.  

• 

In  2018,  the  Labour  Exchange  was  reorganised  into  the  Lithuanian  Public 
Employment  Service  (LPES)  to  improve  the  quality  of  services  provided  to  job 
seekers and employers, as well as to optimise the activities of the institution.  

•  Recent amendments in 2022 aimed to further integrate people with disabilities into 
the labour market and improve access to high-value qualifications and non-formal 
education, demonstrating Lithuania's commitment to creating a more inclusive and 
adaptable labour market. 

1.1. Context, policy and political considerations 

•  What  was  the  relevant  socio-economic  context  of  the  country  at  the  time  when  the 
reform was proposed/introduced (the scope depends on the Thematic Objective/policy 
area)?  

•  What needs did/does the reform seek to address?  

•  Was/Is the reform part of a broader policy package? If so, what was/is the overarching 

objective of the policy package? 

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

1.1.1. Socio-economic context and reform timing 

While  unemployment  in  Lithuania  has  been  steadily  decreasing,  significant  disparities 
remain across different groups and regions. Despite a general improvement in employment 
rates, the youth unemployment rate remains a challenge. In 2014, the youth unemployment 
rate (ages 15-24) was 19.3%, a significant decrease from 35.7% in 2010. However, it still 
roughly  doubles the  overall  unemployment rate. By  July  2016,  youth  unemployment  had 
risen to 16.5% from 13.1% in June, demonstrating the volatility within this demographic.1 

Older  adults  in  Lithuania  also  face  considerable  employment  challenges.  The  old-age 
dependency ratio  has  dramatically  increased over the  past  decade,  rising  from  28.6%  in 
2013 to 30.7% in 2021 (compared to 32.5% for the EU-27).2 Older adults often face long-
term unemployment, lack of skills, lower wages, and high poverty rates during retirement. 
Due  to  one  of  the  lowest  retirement  pensions  in  the  EU  and  a  declining  working-age 
population, the number of older individuals remaining in the workforce is higher than the EU 
average.3 The sharp decline in the working-age population accentuated the need to promote 
employment of those facing difficulties in entering or re-entering the labour market. 

Figure 1 Percentage of older workers (55 yr. and over) as a share of total employed 
people in Lithuania and in the EU (2010-2023) 

Source: own elaboration based on the Labour Force Survey 

Aggregate figures hide significant variability at the regional level. The capital, Vilnius, boasts 
an employment rate of 81.4%, whereas remote and rural areas, such as Anykščiai, Ignalina, 
Lazdijai, and Šakiai municipalities, have employment rates as low as 50%.4 In 2019, Utena 
County had the highest unemployment rate at 14.9%, while Vilnius had the lowest at 4.8%. 
Such regional disparities are partially the result of population decline and ageing in areas 
far from urban centres5 and are worsened by issues of public transport accessibility in rural 
areas. Accessibility in rural municipalities is less than 20–40%, with transport stations often 

1 
policies.eacea.ec.europa.eu/youthwiki/chapters/lithuania/overview [Accessed 24 Jul. 2024]. 

Commission 

European 

Lithuania. 

Available 

(n.d.). 

at: 

https://national-

2  Bražienė,  R.  (n.d.).  Country  Profile  –  Lithuania.  Sustainable  Working  life  Project.  Available  at:  https://cbss.org/wp-
content/uploads/2022/08/sustainable-working-life_country-report_lithuania.pdf. 

3 Mackevičiūtė, R. and ČOP, D. (2021). Ageing policies – access to services in different Member States. Annex V - Country 
study on Lithuania. European Parliament, pp.1–38. 

4 Skučienė, D., Brazienė, R. (2024). Active Labour Market Policies for Rural NEETs in Lithuania: A case of Rural Municipalities. 
Politics and Governance. https://doi.org/10.17645/pag.i378  

5  OECD  (2022).  OECD  Regions  and  Cities  at  a  Glance  2022.  Lithuania.  OECD  iLibrary.  Paris:  OECD.  Available  at: 
https://www.oecd-ilibrary.org/urban-rural-and-regional-development/oecd-regions-and-cities-at-a-glance_26173212. 

2 

 
 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

located  far  from  urban  territories.  The frequency  of  public  transport  services  is  low,  with 
some municipalities having only 3-5 daily services. This inadequate public transport system 
limits the mobility of the unemployed, making it difficult for them to access job opportunities 
in other locations.6 

As  anticipated,  the  2008  financial  crisis  led  to  a  significant  increase  in  long-term 
unemployment  in  Lithuania,  particularly among  low-skilled  and marginalised  groups.  The 
recovery of key sectors such as industry, transport, and construction helped reduce long-
term unemployment to around 2.5% between 2020 and 2023 (Figure 3). Nevertheless, in 
2020,  26%  of the  72,000 registered  unemployed  were  long-term  unemployed,  with  6.2% 
(4,500)  having  never  been  employed  and  27.4%  (19,800)  out  of  work for  more than two 
years.7 Although the number of long-term unemployed fell to 38,700 following the economic 
recovery  (2010-2017),  it  still  did  not  reach  pre-crisis  levels,  highlighting  long-term 
unemployment as one of the most pressing labour market issues in Lithuania. The structure 
of  the  long-term  unemployed  varies  according  to  demographic  characteristics.  Older 
individuals (aged 50 and over) are more likely to experience long-term unemployment, and 
during crisis years, women were more affected than men due to job losses in the industrial, 
construction, and transport sectors. However, by 2017, a significant gender gap emerged 
again, with the share of men among the long-term unemployed being 20 percentage points 
higher than that of women.8 

Figure 2 Long-term unemployment (12+ months) as a percentage of total 
unemployed in Lithuania and in the EU (2010-2023) 

%

9%
8%
7%
6%
5%
4%
3%
2%
1%
0%

0
1
0
2

1
1
0
2

2
1
0
2

3
1
0
2

4
1
0
2

5
1
0
2

6
1
0
2

7
1
0
2

8
1
0
2

9
1
0
2

0
2
0
2

1
2
0
2

2
2
0
2

3
2
0
2

Lithuania

EU27

Source : own elaboration based on the Labour Force Survey 

1.1.2. Identified needs and reform objectives 

Nearly  one  in  three  individuals  registered  with  Lithuania's  Employment  Service  is 
unqualified, one-fifth of the workforce is in lower-skilled jobs than their qualifications warrant, 
and a third are employed in fields unrelated to their studies, highlighting significant structural 

6 Skučienė, D., Brazienė, R. (2024). Active Labour Market Policies for Rural NEETs in Lithuania: A case of Rural Municipalities. 
Politics and Governance. https://doi.org/10.17645/pag.i378  

7 Ministry of Social Security and Labour of the Republic of Lithuania (n.d.). 2021–2030 m. plėtros programos valdytojo Lietuvos 
Respublikos Socialinės Apsaugos ir Darbo Ministerijos įtraukios darbo rinkos plėtros programos pagrindimas. Available at: 
https://socmin.lrv.lt/uploads/socmin/documents/files/administracine-
informacija/Pletros%20programos/%C4%AEtraukios%20dr%20pp/IDR%20PP_aprasymas(1).pdf. 

8  Pocius,  A.  and  Miežienė,  R.  (2018)  “Ilgalaikio  nedarbo  tendencijų  ir  regioninių  skirtumų  įvertinimas  Lietuvoje”,  Lietuvos 
statistikos darbai, 57(1), pp. 28–40. doi:10.15388/LJS.2018.3. 

3 

 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

unemployment issues.9 Reforms in Lithuania's ALMPs between 2014-2022 were aimed at 
addressing  these  issues.  The  Lithuanian  Public  Employment  Service  (LPES)  was 
restructured  to  better  align  with  labour  market  needs  and  address  rising  unemployment, 
social exclusion, and labour market vacancies, aimed at optimising the structure of territorial 
labour  exchanges,  consolidating  functions,  and  increasing  staff  dedicated  to  serving 
jobseekers  and  employers.10  The  extensive  development  of  ALMPs  was  designed  to 
address  the  challenges  described  above,  providing  comprehensive  support  for  all  job 
seekers, including discouraged workers, inactive individuals, and those at risk of job loss. 

1.1.3. Integration within a broader policy context  

The  development  of  ALMPs  in  Lithuania  is  part  of  a  broader  policy  package  aimed  at 
enhancing employment opportunities, reducing unemployment, enhancing the skills of the 
workforce and promoting social inclusion. Between 2014-2022, a large number of measures 
were implemented seeking to develop and improve ALPSs in Lithuania, many of which were 
not isolated measures but rather integrated into national strategy and programmes which 
align with the EU objectives for economic growth and social cohesion.  

1.2. EU and international obligations/conditionalities  

•  Was/Is  the  introduction/implementation  of  the  reform  linked  to  the  existence  of 

EU/international obligations or conditionalities? If so, which ones? 

The  initiative  to  reform  the  approach  towards  the  development  of  ALMPs  has  been 
influenced by recommendations from the European Union and motivated by international 
obligations to a large degree. 

The European Union's governance framework includes the European Semester, a cycle of 
economic and fiscal policy coordination within the EU. As part of this process, the European 
Commission  issues  Country-Specific  Recommendations  (CSRs)  to  Member  States, 
providing  tailored advice  on  how  to  boost  growth  and  employment  while ensuring sound 
public finances. Over the years, Lithuania received several CSRs focused on labour market 
reforms, particularly emphasizing the need to focus on long-term unemployment, low-skill 
workers, integration of young people in the labour market, life-long education, as well as 
urging to reform the administrative capacity of the labour market institutions (Table 1).  

Table 1 CSRs to Ireland on social inclusion, particularly on the inclusion of 
marginalised groups in the labour market 

Year 

CSR 

2014 

2015 

Recommendation 3: "Tackle high unemployment amongst low-skilled workers and long-term 
unemployment by refocusing resources on active labour market policies while improving their 
coverage and efficiency." 

Recommendation  3:  "Better  target  active  labour  market  policy  measures  to  the  low-skilled 
workers  and  long-term  unemployed.  Improve  coverage  and  adequacy  of  unemployment 
benefits and link them with activation." 

9 Dvorak, J. and Bronislava, L. (2020). Reform of the Lithuanian public employment service: analysis of the organisational 
structure. Akademia zarządzania : kwartalnik wydziału Inżynierii zarządzania [Academy of management : quarterly journal of 
the faculty of Engineering management]. 2020, 4, 4, pp.49–67. 

10 Ibid. 

4 

 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

2016 

2017 

2018 

2020 

2022 

Recommendation  3:  “Improve  the  coverage  and  adequacy  of  unemployment  benefits  and 
cash social assistance and improve the employability of those looking for work.” 

Recommendation 2: "Strengthen investment in human capital and address skills shortages, 
by  improving  the  labour  market  relevance  of  education,  raising  the  quality  of  teaching  and 
adult learning. Reinforce the coverage and effectiveness of active labour market policies.” 

Recommendation 2: "To address skills shortages through effective active labour market policy 
measures  and  adult  learning  and  improve  educational  outcomes  by  rewarding  quality  in 
teaching and higher education.”. 

Recommendation  2:  "Improve  quality  and  efficiency  at  all  education  and  training  levels, 
including adult learning.” 

Recommendation  4:  "Guarantee  financing,  effectiveness  and  efficiency  of  active  labour 
market policies. Increase the employment of marginalised groups. Improve the efficiency of 
the Lithuanian Public Employment Service." 

ESF funds were a major part of the reforms. The evaluation of the 2015-2019 timeframe 
shows that 64% of ALMPs financing was received from the ESF, with the remaining part 
coming from the state budget.11 Concrete financing varies from project to project, with ESF 
funding 88% of support for training and supported employment and state financing 78% of 
support for new job creation. The post-COVID Recovery and Resilience Facility (RRF), with 
a budget of up to €723.8 billion in current prices, funds the reform and investment initiatives 
proposed by Member States in their national Recovery and Resilience Plans (RRPs). This 
funding has also been used in Lithuania to promote lifelong education and enhance career-
consulting  capacities.  Funds  have  also  been  used  to  upskill  public  sector  workers  and 
develop the insurance system for the unemployed. The funds have a significant effect on 
the development of the policies.  

Public expenditure on ALMPs in Lithuania has historically been among the lowest in the EU 
and remains low (Error! Reference source not found.). Despite the 2017 reform aimed at m
aking  ALMPs  more  accessible,  spending  did  not  increase  significantly  to  support  this 
change.12 European funds are the primary source of finance for ALMPs in Lithuania, with 
national  funds  mostly  serving  as  co-financing.  The  notion  that  ALMPs  would  not  have 
developed  in  Lithuania  as  rapidly  and  significantly  as  they  have  without EU  support  was 
shared by all interviewees. Nevertheless, while indispensable, the reliance on EU funding 
creates some instability, as resources fluctuate according to programming cycles and are 
less adaptable to evolving labour market conditions.  

11  BGI  Consulting  (2020).  Išlaidų  aktyvios  darbo  rinkos  politikos  priemonėms  peržiūra  galutinė  ataskaita.  Available  at: 
https://www.ppplietuva.lt/uploads/documents/files/BGI_ADRP%20i%C5%A1laid%C5%B3%20per%C5%BEi%C5%ABra_20
201201.pdf. 

12 OECD (2022). Impact Evaluation of Vocational Training and Employment Subsidies for the Unemployed in Lithuania. OECD 
iLibrary.  Paris:  OECD.  Available  at:  https://www.oecd-ilibrary.org/employment/impact-evaluation-of-vocational-training-and-
employment-subsidies-for-the-unemployed-in-lithuania_c22d68b3-en. 

5 

 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

Figure 3 ALMP expenditure as a percentage of GDP across Member States (2014 
and 2022) 

Source: Own elaboration based on Eurostat. 
Note: In 2022, there are no available data for IE, NL, EL, IT, HR, and CY.  

1.3. Acceptance at institutional and societal level 

•  Was/is the reform met with favour from all major political parties in the country? 

Or did it reflect the political programme of a single political party? 

•  Was/is the reform well received by the citizens in the country? 

•  Was/is the reform deemed relevant by the citizens it intends to target? 

The ALMP  reforms  between 2014  and  2022  were  met  with a  general  consensus  among 
political  parties,  social  partners,  and  stakeholders  that  the  quality  and  inclusiveness  of 
ALMPs  in  Lithuania  required  significant  improvement.  Dissenting  voices,  when  present, 
primarily argued that the reforms might not go far enough or be sufficiently funded, some 
contending  that  the  system  remains  underdeveloped.13  Opposition  to  the  reforms  was 
largely absent, attributable to two main factors. Firstly, the reform comprised multiple small, 
technocratic changes, each seen as necessary and technical, thus avoiding major political 
debates. Secondly, the ALMPs were primarily funded by the European Social Fund (ESF) 
(Plus/+). There is a prevailing perception that ESF+ funds have smaller opportunity costs 
compared to national budget expenditures. Consequently, appropriations of ESF+ funds do 
not tend to lead to major debates or controversies, a situation that differs markedly when 
national funding is at stake. This consensus and lack of opposition facilitated the smooth 
implementation  of  the  reforms,  focusing  on  enhancing  the  ALMPs'  effectiveness  and 
inclusivity without significant political friction. 

13  Gruževskis,  B.,  Gražulis,  V.  and  Tučinska,  I.  (2017b).  Lithuanian  labour  market  –  policy  priorities  in  the  context  of  the 
European  Union.  Zeszyty  Naukowe  Politechniki  Poznańskiej  Organizacja 
pp.111–129. 
doi:https://doi.org/10.21008/j.0239-9415.2017.074.07. 

i  Zarządzanie, 

6 

 
 
 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

2. Analysis 

2.1. Governance 

•  Who was/is the entity responsible for the implementation of the reform? 

•  Was/is the reform implemented at the national, regional, or local level?  

•  Was/is the reform regularly monitored/evaluated? If so, who was/is the responsible 

entity? 

2.1.1. Implementation responsibility and leadership 

ALMPs  are  one  of  the  tools  of  employment  support  policy  implemented  mainly  by  the 
Ministry of Social Security and Labour and the Lithuanian Public Employment Service. 

Between  2014  and  2022,  the  Ministry  of  Social  Security  and  Labour  (SADM)  played  a 
central  role  in  the  reform  of  ALMPs,  most  notably  by  initiating  and  enacting  policy  and 
legislative  changes,  including  amendments  to  the  law  of  Employment  support  and 
Employment law and the reorganisation of the former Labour Exchange to the Lithuanian 
Employment Service. The SADM works in very close cooperation with the LPES, the central 
body responsible for implementing ALMPs nationwide, to initiate and implement changes in 
ALMPs  needed  to  better  support  jobseekers  into  employment.  The  ALMP  reforms  were 
significantly  driven  by  the  implementation  of  EU-funded  programmes,  managed  and 
executed  by  the  LPES,  which  aimed  at  strengthening  employment  support,  increasing 
employment  rates  and  enhancing  jobseekers’  skills.  The  LPES  was  modernised  and 
digitised to strengthen operations and enhance the effectiveness of the service and, as part 
of  the  ALMP  reforms,  has  improved  its  monitoring  capabilities  to  continually  collect  and 
analyse  labour  market  data  to  inform  policy  and  collaborate  with  employers  and 
international partners to align programs with workforce needs. 

European funding, particularly through the ESF+, has been instrumental in the development 
and  implementation  of  ALMPs  in  Lithuania.  This  funding  provided  substantial  financial 
resources which have influenced Lithuania’s ability to design, execute, and monitor effective 
employment  programmes,  support  marginalised  groups,  and  modernise  labour  market 
institutions.  As  such,  the  Lithuanian  European  Social  Fund  Agency  (ESFA),  founded  in 
2002, is responsible for managing and administering European Union structural funds. The 
ESFA facilitates all EU-funded ALMP initiatives aimed at promoting employment, reducing 
social  exclusion,  investing  in  lifelong  learning,  and  ensuring  the  competitiveness  of 
Lithuanian businesses. 

ESF+  programmes  are  planned  by  Member  States,  together  with  the  European 
Commission, and then implemented through a wide range of provider organisations both in 
the  public  and  private  sectors.  These  include  national,  regional  and  local  authorities, 
educational  and  training  organisations,  voluntary  organisations,  social  partners,  and 
individual companies. Lithuania adheres to the Partnership Principle,14 which mandates the 
involvement of social partners in all stages of the programming process. This includes the 
preparation, implementation, monitoring, and evaluation of the programs.  

14 European Commission, Directorate-General for Employment, Social Affairs and Inclusion, (2014) The European code of 
conduct  on  partnership  in  the  framework  of  the  European  structural  and  investment  funds.  Publications  Office. 
https://data.europa.eu/doi/10.2767/49637.  

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

The  implementation  of  the  new  social  model15  has  enhanced  the  involvement  of  social 
partners in the design of ALMPs. This was achieved by incorporating ALMP-related topics 
into the Tripartite Council's discussions, where social partners offer strategic advice to the 
LPES and the Ministry of Social Security and Labour (SADM). This increased participation 
by  social  partners  has  been  positively  evaluated  by  stakeholders  involved  in  ALMP 
provision, as evident in recent analyses and interviews with the governing bodies.  

2.1.2. Geographical scope of implementation 

The  measures  aimed  at  developing  of  ALMPs  between  2014-2022  were  primarily 
implemented at the national level, however, with significant involvement from regional and 
local entities for effective execution. 

2.1.3. Monitoring and evaluation framework 

In Lithuania, the monitoring and evaluation of ALMP reforms are primarily the responsibility 
of  the  Ministry  of  Social  Security  and  Labour  and  the  LPES.  The  SADM  oversees  the 
formulation, implementation, and overall supervision of ALMPs, ensuring that these policies 
align  with  national  labour  market  strategies  and  social  policies.  The  Ministry  also  drafts 
legislative  proposals  and  coordinates  with  stakeholders  to  improve  the  effectiveness  of 
these  programmes.  The  LPES,  functioning  under  the  ministry,  oversees  the operational 
monitoring  and  evaluation  of  ALMPs,  which  includes  the  day-to-day  management  of  the 
programmes and their effective implementation across the country. The LPES collects and 
analyses data on employment trends, program participation, and outcomes.  

The monitoring and evaluation of ESF+ programmes are conducted in accordance with the 
Common  Provisions  and  Fund-specific  regulations.16  Additionally  to  the  SADM  and  the 
LPES, the Ministry of Finance acts as the central coordinating body for the management 
and administration of EU structural funds, while the National Audit Office of Lithuania, the 
highest audit authority, ensures the appropriate use of the funds. Additionally, the ESFA is 
the administration body for ESF+-funded programmes and oversees project implementation 
from informing and consulting applicants, verifying and approving eligibility of expenditures 
to managing risks and investigating irregularities throughout the project cycle.  

Evaluations  of  reform  measures  are  frequently  conducted  by  the  governing  institutions 
themselves  as well  as  independent  actors  and research  centres.  For  example, the  2017 
research study on improving the coordination of active labour market policy measures and 
social  assistance  for  the  integration  of  the  unemployed  into  the  labour  market, 
commissioned  by  SADM  and  conducted  by  Civitta,  formed  the  basis  for  major 
developments in ALMPs in the following years.17   

15 Bank of Lithuania (2016). Lithuanian Economic Review. Annex 2. Reform of Lithuania’s social model: regulation of labour 
relations. 
https://www.lb.lt/uploads/documents/files/musu-veikla/ekonomikos-analize-
at: 
prognozes/LER_2016-12_EN_ANNEX2.pdf.  

Available 

[online] 

16  Regulation  (EU),  ‘2021/1057  Establishing  the  European  Social  Fund  Plus  (ESF+)  and  repealing  Regulation  (EU)  No 
1296/2013’, (2021). Official Journal of the European Union. 

17 Civitta (2017). Aktyvios darbo rinkos politikos priemonių ir socialinės paramos suderinimo integruojant nedirbančius 
asmenis į darbo rinką tobulinimo tyrimas. Available at: https://socmin.lrv.lt/uploads/socmin/documents/files/veiklos-
sritys/darbas/darbo-
rinka/TYRIMAI/2017%20adrpp%20ir%20soc_%20paramos%20suderinamumo%20tyrimas%2C%20civitta.pdf. 

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

2.2. Administrative capacity  

•  What did/does the implementation of the reform entail in terms of human resources 

needed for its implementation, and in terms of administrative burden? 

•  Did/do  the  responsible  entities  (at  national/regional/local  level)  have  sufficient 
administrative capacity to successfully implement and monitor the reform? If not, 
why? 

The  LPES  is  a  government  agency  in  Lithuania  organised  under  the  Ministry  of  Social 
Security and Labour. It has a strong record of keeping its internal organisational structures 
and  processes  under  regular  and  often  external  review  and  of  putting  into  effect  the 
recommendation  of  such  reviews  in order  to increase  its  organisational  capacity  and the 
efficiency of project implementation.  

2.2.1. Human resources and administrative burden  

At  the  central  level,  the  implementation  of  ALMP  reforms  required  substantial  human 
resources  to  manage  increased  administrative  tasks,  including  monitoring,  analysis,  and 
reporting. According to one of the interviewees, although the LPES had strong specialists, 
there was a notable shortage of human resources due to the administrative burden and the 
detailed reporting and oversight required. A noteworthy development was the switch to a 
voucher  system  for  training,  which  eliminated  the  need  for  public  procurement  and 
significantly reduced the administrative burden, allowing for a more responsive approach to 
the labour market's needs. Despite these improvements, the responsible entities have, at 
times,  struggled  with  insufficient  administrative  capacity  to  implement  and  monitor  the 
reforms effectively.  

2.2.2. Administrative capacity for implementation and monitoring  

The LPES underwent significant reform in 2018, transitioning from the Lithuanian Labour 
Exchange  to  a  centralised  body  with  increased  functionality  and  a  larger  staff  directly 
interacting  with  clients.  This  reorganisation  expanded  e-services,  consolidated  human 
resources,  and facilitated  the  hiring  of  specialised  consultants  for  specific  target  groups. 
Nevertheless, an audit of LPES in 2021 identified operational risks due to an unmeasurable 
consultant workload, information system glitches and low levels of automation.18 According 
to LPES’ staff and employers, the system lacked functionality and was cumbersome and 
slow. 18% of advisers were not able to enter all the requirements for a vacancy, 8% - all the 
information  on  the  jobseeker's  competencies,  7%  -  all  the  data  on  the  client's  job 
preferences,  11%  were  not  able  to  select  vacancies  for  the  jobseeker  according  to  the 
criteria selected. However, since 2021, an investment project was prepared to upgrade the 
information system within four years.  

The  need  for  more  specialists  was  evident  at  the  regional  and municipal  levels,  and  the 
workload  for  LPES  staff  has  remained  high.  For  instance,  in  2018-2019,  individual 
consultants  were  responsible  for  approximately  300  clients  at  any  given  time,  with  this 
number increasing to 450-500 in 2020 due to the pandemic. Furthermore, the rapid pace of 
legislative  changes  necessitated  continuous  adaptation  by  professionals,  requiring 
additional  training  and  time,  which  further  strained  existing  human  resources.  Extensive 
documentation  and  bureaucratic  processes  sometimes  delay  the  implementation  of 
the 
necessary  changes,  with 

fluctuating  documentation  requirements  adding 

to 

18  Lietuvos  Respublikos  Valstybės  Kontrolė  (2021).  Užimtumo  tarnybos  veikla  didinant  užimtumą.  Available  at: 
https://www.valstybeskontrole.lt/LT/Product/24062/uzimtumo-tarnybos-veikla-didinant-uzimtuma. 

9 

 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

administrative burden. Regional employment services expressed that while they managed 
the workload, additional staff would significantly improve the efficiency and effectiveness of 
reform implementation and monitoring. 

2.3. Mechanisms behind the reform and links with ESF and 

CPR 

•  What were/are the mechanisms that the reform envisaged/s to trigger, to achieve 

its outcomes?  

•  Have these mechanisms been triggered in practice? If so, how? If not, why?  

•  Were there any unexpected impacts of the reform? If so, which ones? On whom 

and/or in what context were they observed? 

•  Was/is the reform directly or indirectly linked to the ESF (+) and its objectives? If 

so, how?  

•  Was/is the need to implement the reform linked to the CPR regulation, or any other 

EU instrument? 

2.3.1. Mechanisms for achieving reform outcomes 

Unemployment is a complex issue that can result from various causes related to a lack of 
labour demand, skills shortages, or institutional factors. All ALMPs have their own positives 
and shortcomings, and therefore, targeted measures are often needed to achieve positive 
outcomes.  As  such,  the  numerous  varied  ALMP  reforms  in  Lithuania  were  aimed  at 
targeting specific groups and were specifically designed to assist individuals with low levels 
of skills or qualifications, long-term unemployed, older people, and marginalised groups.  

2.3.2. Practical activation of reform mechanisms 

A  counterfactual  impact  assessment  of  five  targeted  interventions  showed  that  the 
analysed projects had a statistically significant impact on the employability and wage 
levels  of  participants  and the  impact was found to  be long-lasting (persisting  3  years 
after the intervention).19 However, outcomes were different among the targeted groups, with 
the  relatively  highest  participation  observed  among  the  elderly  (aged  +54)  and  the  long-
term unemployed, with the impact on participants’ employment in the short-term (one and 
two years after participation) at 31%/31% and 33%/25%, respectively. The result after one 
and two years of participation was relatively lowest for the unskilled unemployed and people 
with  disabilities,  25%/14%  and  20%/13%,  respectively.  The  LPES  was  successful  in 
selecting ALMPs relevant to each targeted group. However, the selection could be improved 
by  analysing the  needs of the  unskilled  unemployed  and  people with  disabilities in more 
detail and to the ALMPs toolkits accordingly to better address their needs.20  

Significant efforts to improve the monitoring and evaluation of ALMPs have been ongoing 
since  the  2017  reform.  The  LPES  has  made  strides  in  generating  more  knowledge  on 
ALMPs  and  improving  data  access  and  IT  infrastructure  to  support  better  data 
management, having established robust evaluation and monitoring systems that enable 

19  BGI  Consulting  (2022).  ES  investicijų  poveikio  Lietuvos  makroekonominiams  rodikliams  ir  atskiriems  ūkio  sektoriams 
vertinimas.  Galutinė  vertinimo  ataskaita.  Available  at:  https://2014.esinvesticijos.lt/lt/dokumentai/es-investiciju-poveikio-
lietuvos-makroekonominiams-rodikliams-ir-atskiriems-ukio-sektoriams-vertinimas. 

20 Ibid.  

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

continuous assessment and improvement of reform measures to effectively address labour 
market needs. However, systematic impact evaluations are still not conducted consistently, 
and existing data exchange mechanisms are not yet fully optimised for comprehensive data 
analytics.21 

2.3.3. Unexpected impacts and observations 

One of the unforeseen consequences was the significant reliance of jobseekers on the 
LPES  for  accessing  health  insurance  and  benefits,  rather  than  for  the  ALMPs 
themselves.  Lithuania  experienced  notably  high  rates  of  jobseekers  contacting  public 
employment services, at 86.4% in 2020. This high rate was largely attributed to the eligibility 
for  health  insurance  that  comes  with  registration,  a  trend  not  as  pronounced  in  other 
countries  with  similar  systems.  While  this  high  registration  rate  could  be  seen  as  an 
opportunity to engage with more jobseekers and provide them with employment support, 
stakeholders often viewed it as a downside, resulting in a higher number of clients who were 
not necessarily interested in the LPES support services.22 

Another unexpected issue arose with the targeting of ALMPs, especially those focused on 
employment incentives. The wage subsidies provided to social enterprises intended to 
support  the  employment  of  people  with  disabilities  often  did  not  reach  the  most 
vulnerable  individuals.  Instead,  these  enterprises  tended  to  hire  the  most  employable 
individuals  from  the  target  group,  leaving  those  with  greater  needs  unsupported.  This 
misalignment not only limited the effectiveness of the support but also led to criticisms and 
calls for better targeting and regulation of the subsidies. 

2.3.4. Linkages to ESF(+) and strategic objectives 

The ALMPs reform measures implemented between 2014-2022 were directly linked to the 
ESF during the 2014-2020 programming period and to the ESF+ starting from 2021. The 
links were established especially through:  

•  Funding support. The majority of ALMP measures in Lithuania are co-financed with 

EU support, including the ESF(+).  

•  Alignment with ESF(+) objectives, specifically, to improve access to employment, 
increase  participation  in  the  labour  market,  improve  the  gender  balance,  and 
modernise labour market institutions and services.23 

2.3.5. Alignment with EU Regulations and Instruments 

The  development  of  ALMPs  in  Lithuania  was  linked  to  the  broader  EU  regulatory 
frameworks, particularly the Common Provisions Regulation (CPR). The CPR governs the 
use of funds under the European Structural and Investment Funds (ESIF), which include 
the ESF+. This regulation aims to ensure that the funds are used efficiently and effectively, 
promoting a more results-oriented approach to investment. The reforms were aligned with 
the  CPR's  emphasis  on  enhancing  the  effectiveness,  efficiency,  and  targeting  of 
investments  to  meet  specific  regional  and  national  needs.  In  addition  to  the  CPR,  the 
European Commission's guidelines for counterfactual impact evaluations have influenced 
the  developments.  These  guidelines  promote  rigorous evaluation  methods  to  assess the 

21 OECD (2022). Impact Evaluation of Vocational Training and Employment Subsidies for the Unemployed in Lithuania. OECD 
iLibrary.  Paris:  OECD.  Available  at:  https://www.oecd-ilibrary.org/employment/impact-evaluation-of-vocational-training-and-
employment-subsidies-for-the-unemployed-in-lithuania_c22d68b3-en. 

22 Ibid. 

23  European  Commission.  European  Social  Fund  Plus:  Areas  of  support.  Available  at:  https://european-social-fund-
plus.ec.europa.eu/en/areas-support 

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

actual impacts of funded programs, ensuring that they deliver tangible benefits and inform 
future  policy  adjustments.  Lithuania's  efforts  to  improve  its  monitoring  and  evaluation 
framework, including its participation in OECD-EC projects, reflect this broader EU influence 
aimed at fostering a more evidence-based approach to policy-making. 

2.4. Mechanisms leading to success and bottlenecks 

•  Were /are there any factors that facilitated the implementation of the reform and 

positively impacted on its outcomes? If so, which ones?  

•  Were /are there any obstacles that hindered the implementation of the reform and 
negatively impacted on its outcomes? If so, which ones? How (if at all) were the 
obstacles resolved?  

•  Did/do any EU instruments impact (positively or negatively) on the implementation 

and outcomes of the reform? If so, which ones? How? 

2.4.1. Facilitating factors for reform implementation 

The  implementation  of  ALMP  reform  has  been  facilitated  by  several  factors,  contributing 
positively to its outcomes. A notable success factor was the simplification of cost accounting 
methods, such as fixed rates, which streamlined the administrative process and reduced 
the  volume  of  required  supporting  documentation.  This  simplification  has  decreased  the 
administrative burden and expedited the implementation of reform measures. Furthermore, 
the integration of various national registers in Lithuania has linked approximately 40 
national  registers,  thus  the  capacity  of  LPES  to  track  and  assess  data  on  individuals' 
statuses, capabilities, and service needs. This comprehensive data integration has allowed 
for a more accurate assessment of the effectiveness of ALMP measures.  

Strong  cooperation  between  the  Employment  Service  and  the  Ministry  of  Social 
Security and Labour has enabled the swift identification and resolution of issues, including 
cases of abuse within the system. Joint efforts have led to political solutions and changes 
in the legal framework, reducing the risks of abuse and ensuring the reform's integrity.  

2.4.2. Obstacles and mitigation measures  

Despite the successes, several obstacles have hindered the implementation of the ALMP 
reform in Lithuania. One significant bottleneck has been managing potential employers 
and  external  training  providers  who  seek  to  benefit  from  EU  funds  under  false 
pretences.  Ensuring  these  actors  genuinely  contribute  to  the  integration  of  unemployed 
individuals rather than merely seeking financial support has been a constant challenge.  

The  slow  modernisation  of  the  administration  system  has  also  been  noted  as  an 
obstacle to implementation. The need for more agile technology and advanced systems is 
evident, as the current system still requires substantial manual work. Although efforts are 
underway  to  develop  a  new  Employment  Service  Information  System  with  technological 
solutions such as artificial intelligence, it is not expected to be operational until 2026. Until 
then, the administrative burden remains high, limiting the reform's efficiency. Besides the 
lack of technological solutions, the lack of staff also burdens the responsible institutions.  

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

2.4.3. Impact of EU instruments on reform outcomes 

The role of EU instruments, such as the ESF+, in initiating, implementing, and evaluating 
changes in the ALMP measures has been instrumental and all interviewees voiced that the 
rapid evolution and positive outcomes of ALMPs in Lithuania would have been highly 
unlikely without the EU funds. These funds have primarily been used to finance measures 
regulated by the Employment Act, without which the coverage of ALMP measures would be 
significantly reduced. Nevertheless, while EU funding has provided essential support for the 
participation of the unemployed in various measures, it has not been sufficient to address 
all needs, particularly those related to preventing unemployment among the employed as 
these programmes are primarily supported only by the state budget. 

EU  instruments  have  positively  impacted  the  reform  by  facilitating  international 
cooperation  and  the  exchange  of  best  practices.  Periodic  meetings  and  discussions 
within the network of European employment services, supported by EU instruments, have 
been  valuable for  sharing  experiences  and solving  common  problems.  This  international 
collaboration  has  indirectly  contributed  to  the  success  of  the  reforms  by  enabling  the 
adoption of effective strategies from other EU Member States.  
3. Conclusions 

3.1. Impacts of the reform 

•  Did the reform successfully achieve all of its intended outcomes? If not, why?  

•  Did the reform successfully reach its targeted audience? If not, or if only partially, 

why?  

•  Were/are the impacts achieved sustainable in the long-term? 

•  How can the design and implementation of this reform provide insights for future 

reforms? 

3.1.1. Achievement of intended outcomes 

The reforms have been successful to some extent, having achieved several of the intended 
outcomes but not all. A significant portion of participants have successfully secured 
permanent  employment,  with  around  half  of  those  involved  in  professional  training 
programs employed 18 months after participation. Additionally, the supported employment 
programme demonstrated a higher success rate, with 60% of participants still employed 24 
months  post-program,  indicating  a  positive  impact  on  job  security.  The  subsidies  for 
required skills also showed strong outcomes, with 64% of participants remaining employed 
after two years. However, the apprenticeship programme was less successful as it was less 
appealing to employers who preferred employment subsidies for financial reasons.  

3.1.2. Effectiveness in reaching targeted audience 

The  reforms  were  partially  effective  in  reaching  the  targeted  audience.  Some  of  the 
developments  were  designed  to  assist  skilled  individuals,  older  people,  people  with 
disabilities, and the young population without prior work experience. Programmes such as 
supported employment and subsidies for required skills successfully reached and benefited 
these  groups,  as  evidenced  by  the  high  employment  retention  rates  among  participants. 
However, the effectiveness varied among the different groups. While older individuals and 
the long-term unemployed saw significant benefits, the unskilled unemployed and disabled 

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

participants  had  comparatively  lower  success  rates.  This  suggests  that  the  needs  of  the 
latter groups were not fully met, indicating a need for more tailored and detailed analysis to 
adapt  the  ALMP  measures  accordingly.  Additionally,  geographic  disparities  remained  a 
significant barrier, with employment rates varying widely between urban centres like Vilnius 
and  remote  rural  areas,  suggesting  that  geographic  mobility  and  localised  support 
measures need further improvement. 

3.1.3. Sustainability of reform impacts  

The impacts of the reforms showed signs of long-term sustainability for certain groups. 
Participants in supported employment and required skills subsidy programs demonstrated 
high retention rates, with around 60-64% still employed two years post-program. However, 
there  was  differential  sustainability  of  impacts,  which  was  less  pronounced  for  unskilled 
unemployed  and  participants  with  disabilities.  Additionally,  the  persistent  structural 
unemployment  highlights  ongoing  challenges  in  achieving  sustainable  long-term  impacts 
across the entire labour market. Continued adaptation and targeting of ALMP measures are 
needed to ensure long-term sustainability for all participants.  

3.1.4. Insights for future reforms 

Addressing  the  complex  challenges  of  long-term  unemployment  necessitates  a  nuanced 
approach that is flexible and able to dynamically adjust activation measures and institutional 
frameworks to align with evolving economic conditions.  The heavy reliance on European 
funding for ALMPs has meant that the allocation of funding and implementation of policy 
actions are largely guided by the priorities and timelines of European programmes, lacking 
responsiveness to cyclical conditions. Additionally, the reliance has, to some extent, limited 
the scope and inclusiveness of programmes, resulting in uneven targeting of specific groups 
at the expense of broader systematic impact.  

the 

Additionally, 
further  development  of  sophisticated  monitoring  and  evaluation 
frameworks is essential, serving as a foundation for successful implementation. robust and 
comprehensive ALMP performance evaluation is indispensable. The shift from short-term, 
output-focused  assessments  to  long-term,  impact-oriented  evaluations  could  refine 
programme  design  and  effectiveness.  Key  reforms  should  prioritise  evidence-based 
policymaking,  underpinned  by 
improved  evaluation  protocols,  sustained  political 
commitment, and compliance with European funding requirements.  

3.2. Lessons learnt 

•  What worked well? What did not? Why? 

•  What could have been done differently? How? 

•  What  can  still  be  done  to  improve  the  reform?  How  can  the  reform  still  be 

improved? 

3.2.1. Successes and shortcomings 

One  of  the  key  lessons  from  Lithuania’s  ALMP  reforms  is  the  importance  of  robust 
governance  and  coordination  among  involved  stakeholders.  The  Ministry  of  Social 
Security  and  Labour  and  the  LPES,  together  in  close  coordination,  implement  these 
policies,  supported  by  EU  funds.  Effective  cooperation  between  institutions,  both  on  a 
national and local level, facilitated the identification and resolution of issues and encouraged 
more  local  solutions  by  increasing  cooperation  between  municipalities  and  employment 

14 

 
 
LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

services. This allowed for more tailored responses to specific local needs, leveraging the 
knowledge  of  social  workers  and  local  authorities  while  at  the  same  time  ensuring  the 
alignment of national policies with EU objectives. However, the reliance on EU funding also 
highlights an important vulnerability; fluctuations in these resources can lead to instability, 
emphasising the need for a more stable, nationally funded foundation for ALMPs to ensure 
sustainability. 

The development of effective ALMPs requires consistent monitoring and evaluations. 
Lithuania has improved its monitoring and evaluation framework by utilising more data from 
numerous  registers  and  enhancing  its  IT  infrastructure.  However,  further  progress  is 
needed, including moving from simple outcome monitoring to CIEs, incorporating job quality 
aspects,  and  further  modernising  IT  systems  for  data  sharing.  Additionally,  effectively 
communicating evaluations to the public and policymakers can help the Ministry of Social 
Security and Labour and the Lithuanian Employment Service secure necessary resources 
and achieve more substantial and sustainable funding for effective ALMPs. 

Lithuania’s approach to integrating vocational training with supported employment, and the 
introduction of measures such as the “training voucher” scheme demonstrated the benefits 
of  adaptable  policy  design  in  meeting  diverse  labour  market  needs.  The  vocational 
training and employment subsidies are two of the main ALMPs in Lithuania representing 
half of the total ALMP budget with about one-third of all participants. The voucher system 
for  vocational  training  has  been  a  particularly  successful  initiative.  In  practice,  they  are 
implemented  with  the  Employment  Service  counsellor  first  assessing  individual  needs, 
agreeing with the jobseekers on relevant support, and subsequently the jobseeker choosing 
a  training  provider.  This  approach  offers  the  possibility  of  having  several  providers  offer 
similar types of training can lead to competitive pressures that act to improve the quality of 
training  provision.  The  voucher  system  could  also  allow  for  a  wider  array  of  training 
programmes  to  be  offered  with  lower  administrative  burden,  which  may  help  to  address 
local skills shortages more quickly and effectively. 

The  network  of  employment  services  across  EU  countries  has  aided  in  fostering 
collaboration and addressing common challenges and has been highlighted as a valuable 
opportunity  for  cross-learning.  Periodic  meetings  serve  as  a  platform  for  discussing 
individual  topics,  sharing  experiences,  and  exchanging  solutions.  For  example,  if  one 
member encounters a specific problem and finds a successful resolution, this knowledge 
can  be  shared  with  others  facing  similar  issues.  This  network,  inspired  by  the  European 
Commission, helps to disseminate best practices and enhance the overall effectiveness of 
employment services. 

3.2.2. Alternative approaches and missed opportunities 

from 
reforms  of  ALMPs  encompassed  numerous  and  diverse  measures, 
The 
comprehensive and large-scale legislative changes and institutional restructuring efforts to 
small-scale  incremental  programmes  and  projects.  While  progress  has  been  made  in 
reducing unemployment and enhancing the efficiency of employment services, ALMPs have 
generally not been prioritised by policymakers, resulting in limited national funding and a 
substantial dependence on EU resources, thereby constraining the long-term sustainability 
and flexibility of these policies in addressing emerging labour market challenges. Reliance 
on  external  funding  creates  potential  service  gaps,  highlighting  the  need  for  increased 
national  investment,  which  would  foster  a  more  resilient  and  adaptable  ALMP  system, 
reducing dependency on EU funding cycles and priorities—a constraint also noted during 
the interviews.  

3.2.3. Opportunities for ongoing improvement 

There is a need for detailed, long-term planning and coordination with various authorities, 
including the European Commission and audit authorities. It was noted during an interview 

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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

that the Lithuanian institutions sometimes encounter difficulty in predicting all costs and 
activities  several  years  in  advance,  which  adds  to  the  administrative  burden  and 
delays  in  project  implementation.  The  challenge  of  working  with  predetermined  fixed 
amounts for funding specific measures in programmes can occur because decisions must 
be made in advance and once set, they cannot be easily changed. The rigidity can become 
problematic as initial plans that seem suitable at the time may later prove to be too restrictive 
or inadequate for the dynamic present needs of the labour market. The financial planning 
process  requires  precise  alignment  with  specific  objectives,  which  are  often  broad  and 
encompass  various  activities  and  costs.  Despite  these  constraints  and  the  potential  for 
inflexibility, efforts are made to maximize the opportunities provided by the system, even 
though it sometimes leads to inefficiencies and less-than-optimal outcomes.  

One  interviewee  observed  that  the  current  programming  period  (2021-2027)  offers 
significantly less flexibility compared to the previous cycle. Given the dynamic nature of the 
labour  market  environment,  flexibility  is  needed  for  ALMP  operations  to  enable 
implementers  to  review,  amend,  reallocate,  and  adjust  both  funds  and  measures.  The 
previous periods were notably characterised by a simpler process in the past, with fewer 
instances  requiring  changes  to  the  operational  program  encountered.  In  contrast,  the 
current  period  often  requires  more  adjustment  to  the  investment  program  to  respond 
effectively to internal needs. 

16 

 
 
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LITHUANIA CASE STUDY : DEVELOPMENT OF ACTIVE LABOUR MARKET POLICY 

Annex 1 Interviewees 

No.   Type 

Role 

Organisation 

Date 

1 

2 

3 

4 

5 

6 

7 

Government official 

Senior Advisor 

Ministry 
Security and Labour  

of 

Social 

20/06/2024 

Implementing 
organisation 

Department director 

Employment Service  

03/07/2024 

Implementing 
organisation 

Regional 
Head 
Customer Service 

of 

Employment Service 

04/07/2024 

Implementing 
organisation 

Regional 
Head 
Customer Service 

of 

Employment Service 

04/07/2024 

Government official   Head of European Union 

Investment Department 

Government official 

European 
Investment Advisor 

Union 

Ministry 
Security and Labour 

of 

Social 

Ministry 
Security and Labour 

of 

Social 

10/07/2024 

10/07/2024 

Managing authority 

Head of the Project Unit 

ESF Agency 

09/07/2024 

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